Goldman Sachs 2002 Annual Report Download - page 61

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In November 2002, the Emerging Issues Task Force
(EITF) reached a consensus on Issue No. 00-21,
“Accounting for Revenue Arrangements with Multiple
Deliverables.” EITF Issue No. 00-21 addresses the
accounting for arrangements under which a vendor will
perform multiple revenue-generating activities. EITF
Issue No. 00-21 is effective for revenue arrangements
entered into beginning with our fourth fiscal quarter in
2003. We do not expect it to have a material effect on our
financial condition or results of operations.
In November 2002, the EITF reached a consensus on
EITF Issue No. 02-3, “Issues Involved in Accounting for
Derivative Contracts Held for Trading Purposes and
Contracts Involved in Energy Trading and Risk
Management Activities.” EITF Issue No. 02-3 precludes
mark-to-market accounting for energy-trading contracts
that are not derivatives pursuant to SFAS No. 133,
“Accounting for Derivative Instruments and Hedging
Activities.” We have adopted the provisions of EITF Issue
No. 02-3 related to energy-trading contracts as of the
beginning of the fiscal 2003 first quarter and the effect of
adoption was not material to our financial condition or
results of operations. EITF Issue No. 02-3 also commu-
nicates the FASB staff’s belief that the transaction price
for a derivative contract is the best information available
with which to estimate fair value at the inception of a
contract when the estimate is not based on other observ-
able market data. We are currently evaluating the impact
of the FASB staff’s view on our financial condition and
results of operations.
58 G O L D M A N SA CH S 2002 AN N UA L R EPO RT
Managem ent’s D iscussion and A nalysis